Bricks and Brexit – what do we actually know?
“Report suggests post-Brexit fears may have been overestimated”
“House sales and prices set to rise in post Brexit boost”
“House prices set to fall 1% next year due to Brexit”
Reading about the property market lately has been a bit like watching a ping pong match. With a lot of conflicting opinions available, it can be difficult to know where you stand.
If you are considering making a move but are not sure whether now is the right time, the first thing to remember is that no one has a magic mirror to predict what’s around the corner. Even in an uneventful property market you can still be surprised!
However, with so many different perspectives on what the market will do next, it’s important that, whatever you decide, you base your actions on the facts and information available. For example:
- 1. Monthly surveys from the Royal Institute of Chartered Surveyors (RICS) show that they have seen the number of new properties coming to the market fall for the third month in a row, with this figure now approaching the record low seen in December last year.
- 2. As a result, while house price growth fell nationally from June to July to 8.3% according to the Office of National Statistics (ONS), Registers of Scotland (RoS) information shows that prices in Scotland are still 3.4% higher on average than in the same month last year.
- 3. While projections for market growth have been reduced in the immediate future, surveyors still anticipate a rise of 3.3% in house prices each year over the next five years - versus a projection of 4% at the start of 2016 (RICS)
- 4. The national average for the length of time it takes to sell a property fell to a record low in May according to Rightmove, taking just 57 days to complete
- 5. With a significant number of changes impacting the Scottish property market in the past few years, taking small snapshots of information can sometimes give a misleading picture. Figures from the ONS for 2005 to 2016 give a wider picture and show that the rate of growth in the Scottish property market has been slow and steady since 2008, building a more sustainable and robust market.
- 6. Finally, it’s worth remembering that the majority of people still want to own their own home. Following the EU result, a Council of Mortgage Lenders survey found that 88% of adults insist that they will purchase in the next 10 years, indicating that demand from buyers is not about to dry up.
Buying and selling a home at any time is always a big decision. It’s understandable that in such circumstances people are taking longer to assess their situation before committing to a course of action. If this is you, the most important thing is to ensure you have all the facts about your local market. No one can see the future, but knowing as much as you can about past market data and the current facts and figures can make a huge difference.
Linda Black is Head of Property Sales for Pagan Osborne in Fife. For more information about property in the area, get in touch.